Rachael Markham

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Insolvency Service “reframes” view of creditor – IPs can apply their discretion (UK)

The Insolvency Service have held a long-established view that creditors are classed as such at the point of entry into an insolvency process.  This view was brought into question and challenged in the cases of Pindar and Toogood where in essence the judges (after considering the definition of secured creditor in s248 of the Insolvency … Continue Reading

Revisions to SIP 14 – Responsibilities to Preferential Creditors (including Classification of Charges) (UK)

Since the cases of Avanti and UKCloud we have seen more arguments around the classification of a charge – is a typical floating charge asset actually subject to a fixed charge?  Is a fixed charge really floating?  Much depends on the control the charge holder asserts, but we have seen some novel claims. The position … Continue Reading

Practice Statement: Restructuring Plans and Schemes – What Does this Mean for the Future? (UK)

We have seen an increasing number of contested restructuring plans (RPs) over the last quarter. With a notable shift of RPs into the litigation arena, and some gentle push back from the judiciary about timetabling and use of court time the judiciary has published a draft practice statement for consultation outlining new case management requirements … Continue Reading

What are the Key Takeaways for managing HMRC in a UK restructuring plan (RPs) and beyond?

Much will depend on the specifics of a company’s financial position, but there are some themes from the OutsideClinic and Enzen judgments that are helpful – and arguably so even beyond the context of RPs for a company’s managing its relationship with HMRC. Is HMRC in or out of the money? In OutsideClinic HMRC had … Continue Reading

And just like that another Restructuring Plan is sanctioned with HMRC supporting (UK)

The Outside Clinic restructuring plan (RP) was sanctioned last week with HMRC voting in favour of it. In a similar vein to Enzen (see our earlier blog) HMRC initially indicated that it was not inclined to support the plan, but, after negotiating a higher return following the convening hearing, it voted in favour of it. A … Continue Reading

HMRC Supports a UK Restructuring Plan with its Change in Approach – Good News for Future RPs?

You may have read our previous blog about the Outside Clinic Restructuring Plan (RP) which asked whether 5p was enough to cram down HMRC and thought, well surely if that’s not enough, 10p would work? The Enzen Restructuring Plans (RPs) that were sanctioned this week also sought to compromise HMRC’s secondary preferential debt proposing a … Continue Reading

(UK) Is 5p enough to cram down HMRC in a Restructuring Plan?

For those in the mid-market who have watched developments in restructuring plans (RP) move from a potential rescue tool, to something prohibitively expensive, the OutsideClinic RP might be one to watch. Not least because the RP seeks to cram down HMRC. Following RPs proposed by Naysmyth and the Great Annual Savings Company (which were unsuccessful … Continue Reading

Are you making progress? The Scottish court provides helpful pointers to English administrators seeking to extend on the content of progress reports

Although the case of Anthony John Wright and Alastair Rex Massey vs. Scottish Court of Session [2024] CSOH 105 is (as the name suggests) a Scottish decision, there are several takeaways from the case relating to the content of progress reports, which could usefully be applied and followed by English practitioners when making their own application.  … Continue Reading

Will UK businesses face supply chain challenges now Trump is in office?

Throughout his 2024 campaign, President Donald Trump vowed that if re-elected, he would address unfair trade practices, rebalance trade relationships, and fund other economic proposals through new and expanded tariffs. With his return to the White House, the world is grappling with a complex web of international trade risks and potential opportunities in 2025. President … Continue Reading

I have the power – UK court confirms the ability of sole directors to make decisions

Following the decisions in Fore Fitness and Active Wear – where the court examined the validity of decisions made by a sole director of a company that operated wholly or partly under the Model Articles[1]– the position was not entirely settled. In the context of administration appointments where the validity of an appointment rests on … Continue Reading

(UK) Are preferential creditors unsecured creditors?

It seems like s248 of the Insolvency Act 1986 (“Act”) is flavour of the month with the judiciary at the moment, with two recent cases analysing this in the context of administration extensions (read our previous blogs here and here ) and now a further decision considering this in the context of converting an administration … Continue Reading

Reflections on The UK Pensions Regulator’s (TPR) Powers that could see Insolvency Practitioners facing £1million fines

There is a tension between UK insolvency and pensions laws. Put simply, this is because insolvency laws look to protect all of the company’s creditors, but pension laws seek to protect the interests of the pension creditors alone. When new offences and criminal sanctions were introduced in 2021 enabling TPR to issue fines of up … Continue Reading

(UK) Should we all be a bit more relaxed about procedural hiccups in notices appointing administrators?

As practitioners we pour over notices of intention to appoint (NOIA) and notices of appointment of administrators (NOA) to make sure every detail is accurate.  Why? Because no one wants to risk an invalid appointment because there was a minor mistake or error that was overlooked.  Understandably errors occur, particularly when the appointment of administrators … Continue Reading

(UK) The Court Considers the Question of Whether Secured Creditor Consent is Required to an Administration Extension Again. “Too Good” to be True?

No, it isn’t.  We now have two cases where the Court has decided that the consent of paid secured creditors is not required when extending an administration under para. 78 of Schedule B1 of the Insolvency Act 1986 (the “Act”). In Boughey & Anor v Toogood International Transport and Agricultural Services Ltd [2024] EWHC 1425 … Continue Reading

(UK) What practical changes can IPs expect from the proposed amendments to FCA guidance?

The UK Financial Conduct Authority (FCA has issued a consultation about proposed changes to its Guidance for Insolvency Practitioners.  The aim is to clarify existing guidance and provide more information to insolvency practitioners (IPs) on how to deal with regulated firms. The proposed amendments (shown as track changes in this document) intend to update the … Continue Reading

UK Litigation Funding post PACCAR – Tying up Loose Ends

Last year we discussed the impact of funding insolvency litigation following the Supreme Court decision in PACCAR where the court found that litigation funding agreements (LFAs) were damaged based agreements.  This meant that unless LFAs complied with the Damages Based Agreements Regulations 2013 (DBA Regulations), they were unenforceable.  Although concluding that the outcome of the … Continue Reading
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